Deal of Deals?

This might turn out to be one of the most significant deals in the past 15 years

http://news.bbc.co.uk/1/hi/technology/8070291.stm

Microsoft teaming up with Sky to deliver premier league football and current movies via the xBox Live network. This is the kind of deal that takes Microsoft closer and closer to their little nivana of having a Microsoft powered device in every home. There will be a lot of parents that feel better about buying little Jonny an xBox if they can watch the football and movies via the same network. It also provides Sky with some extra viewing numbers for them to be able to drive more advertising revenues ... so a win win for Microsoft and Sky.

Sony on the other hand should look at this with some trepidation. While the fight was just Sony versus Microsoft then that looked a fair fight. Sony versus Microsoft plus several worldwide media networks looks like there will be just one winner. Nintendo wont be too concerned, its not their target area for the market.

My expectation is that Sony will be looking at similar content partners to even up the sides. TimeWarnerAOL possibly or something along the lines of HBO. In the short term though I think its Microsoft 1 - 0 Sony.